According to the FACT Act Risk-Based Pricing Rule that went into effect January 1, 2011, any company that uses a credit report or score in connection with a credit check decision must notify a consumer when granting credit on "material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers." However, the Rule does allow lenders to deliver an “exception notice” in lieu of the risk-based pricing notice.

TransUnion has developed two solutions that fully support the model form exception notice in the Rule.

Applications

Score Percentile Ranking

Produce the model form exception notice without the added time and expense of maintaining multiple score distribution graphs or creating the statement from multiple score interval tables.

Score Distribution Graphs and Score Interval Tables

Populate the score comparison section of the exception notice for an easy-to-read, consumer-friendly communication.

Available on all active, generic score models

Graphs and tables will be updated as necessary, but no less than every two years

Available as an add-on to the online credit report check, the score percentile ranking allows you to populate the percentage directly in the statement. For example: "Your credit score ranks higher than [X percentage] of U.S. consumers"